Daytrading Oct 20 afternoon

Thanks for the holiday wishes this morning, team. Thanks also Shants for anchoring the morning session.

Half-time round-up:

The share market hit a three-week high this morning as bullish US equity futures and gains on Asian markets helped fuel a fifth straight advance.

At lunchtime the ASX 200 was trading 48 points or 0.9% ahead at 5320 after earlier rising as high as 5342, the index's highest point since September 26. Gold (-1.2%) was the only sector left behind by a rally fronted by IT +1.5%, financials +1.2%, consumer discretionary +1.2% and the Small Ords +1.2%. The materials sectors rose 0.9%.

“I think people will become more comfortable this week,” Angus Gluskie, managing director of White Funds Management, told Bloomberg. “Shares will bounce back in Asia.”

US futures marched higher ahead of the second big week of the latest corporate quarterly earnings season. Dow futures were recently up 85 points or more than 0.5%. China's Shanghai Composite advanced 0.26%, Hong Kong's Hang Seng 0.86% and Japan's Nikkei 3.36%.   

Crude oil futures rallied 51 cents this morning to US$83.23 a barrel. Spot gold was $2.60 weaker at US$1,235.60 an ounce. The dollar was buying 87.82 US cents.


Another risk-on morning, gauged by equity futures, sector analysis, currency movements, oil and gold. Good to see the XSO among the best of the gains - it was hesitant to follow the broader market last week. That said, there didn't seem to be an over-abundance of obvious trades around this morning. TLM was the stand-out and the break-out in PPX looks obvious now. Might take a few more days of gains on the broader market before the minnows really join in. I had a nibble at IFN near the low, which is slowly coming good. That is likely me for a few weeks. Hopefully the market will continue its healing. Your mission, should you choose to accept it, is to drive the XJO to around 5500-5600 over the next three weeks. Doable?